A Field Experiment on Moral Suasion and Tax Compliance Focusing on Under-Declaration and Over-Deduction
AbstractField experiments in the area of tax compliance are rare. This field experiment generates a unique data set with respect to individualsâ€™ under-declaration of income and wealth and over-deductions of tax credits by obtaining exclusive full access to the audits. Using this commune level data from Switzerland, the paper explores the influence of moral suasion on tax compliance. Moral suasion was introduced through a treatment in which taxpayers received a letter signed by the communeâ€™s fiscal commissioner containing normative appeals. Interestingly, I observe differences between under-declaration and over-deductions. Moreover, the overall finding is in line with former results that moral suasion has hardly any effect on taxpayersâ€™ compliance.
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Bibliographic InfoPaper provided by Center for Research in Economics, Management and the Arts (CREMA) in its series CREMA Working Paper Series with number 2012-06.
Date of creation: Jun 2012
Date of revision:
tax compliance; moral suasion; field experiment;
Other versions of this item:
- Benno Torgler, 2012. "A Field Experiment on Moral Suasion and Tax Compliance Focusing on Under-Declaration and Over-Deduction," School of Economics and Finance Discussion Papers and Working Papers Series 285, School of Economics and Finance, Queensland University of Technology.
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
- H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-06-13 (All new papers)
- NEP-EXP-2012-06-13 (Experimental Economics)
- NEP-IUE-2012-06-13 (Informal & Underground Economics)
- NEP-PBE-2012-06-13 (Public Economics)
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